"We are very comfortable with the solid results achieved during the
first quarter, considering the uncertain environment in which we are
operating," said Daniel Greenberg, Chairman and CEO of Electro Rent.
"The quarter was characterized by several positive trends, including
strong equipment rentals, an expanding telecom business and data
products growth. Our European operations held steady, while China
continues to show promise for this fiscal year. Both new and used
equipment sales declined modestly."

Total revenues for the first quarter of fiscal 2014 rose to $60.2
million from $58.5 million one year ago. Rental and lease revenues
increased approximately 6.0% to $35.7 million for the first quarter of
fiscal 2014, up from $33.7 million last year. Sales of equipment and
other revenues totaled $24.5 million for the most recent quarter of
fiscal 2013, compared with $24.8 million last year.

Selling, general and administrative expenses equaled $14.7 million, or
24.4% of total revenues, for the first quarter of fiscal 2014, compared
with $13.8 million, or 23.6% of total revenues, for the similar quarter
last year. The increase principally related to the ongoing enhancement
of Electro Rent's sales and sales support organizations, as well as its
administrative infrastructure, to support the company's growth plans.

Total operating expenses amounted to $51.4 million for the fiscal 2014
first quarter, versus $50.3 million a year ago.

Operating profit for the first quarter of fiscal 2014 was $8.8 million,
or 14.6% of total revenues, compared with $8.2 million, or 14.1% of
total revenues, for the first quarter of fiscal 2013.

Net income grew to $5.7 million, or $0.23 per diluted share, for fiscal
2014 first quarter, versus $5.1 million, or $0.21 per diluted share, for
the same quarter last year.

The company's effective tax rate was 35.8% for the first quarter of
fiscal 2014, compared with 39.4% for the same quarter last year. The
decrease was principally related to changes in state tax apportionment.

Rental equipment additions for the fiscal 2014 first quarter were $15.0
million, compared with $17.9 million for the fiscal 2013 first quarter.
The net book value of Electro Rent's equipment was $233.7 million at
August 31, 2013, compared with $234.9 million at the end of the last
fiscal year.

Electro Rent had a sales order backlog for test and measurement
equipment relating to its Agilent resale agreement of $6.9 million at
August 31, 2013, versus $7.8 million last year, primarily reflecting a
decrease in new sales orders due to lower demand. The majority of the
backlog is expected to be delivered to customers within the next six
months.

Electro Rent paid dividends of $5.0 million for the first quarter of
fiscal 2014. On an annualized basis, Electro Rent's current quarterly
dividend of $0.20 per common share represents a 4.6% yield on the
October 2, 2013 closing share price of $17.43.

Total shareholders' equity at August 31, 2013 was $225.0 million, or
$9.38 per share, compared with $228.5 million, or $9.52 per share, at
May 31, 2013.

Electro Rent's cash and cash equivalents balance was $5.5 million at
August 31, 2013, compared with $10.4 million at May 31, 2013. The
decline related primarily to the repayment of debt. Bank borrowings at
August 31, 2013 were reduced to $5.0 million, from $10.0 million at May
31, 2013 and a high of $23.0 million in December 2012, when the company
paid its special dividend.

"We remain cautiously positive about the remainder of the fiscal year,
despite the complicated issues surrounding the current government
'shutdown,' sequestration, the national budget, and the impact that is
having on our core customer sectors. In this environment, customers are
continuing to respond very positively to the alternatives we offer,
which allow them to deploy their capital in much more effective ways,"
said Greenberg. "We believe Electro Rent's longer-term prospects remain
very promising. Regardless of external challenges, we are confident that
the range of choices we offer to customers, including sale of new and
used equipment, leases, and most importantly, rentals, will become a
much more important factor in our customers' business decisions this
coming fiscal year."

About Electro Rent

Electro Rent Corporation (www.ElectroRent.com)
is one of the largest global organizations devoted to the rental,
leasing and sales of general purpose electronic test equipment, personal
computers and servers.

"Safe Harbor" Statement:

Except for the historical statements and discussions in this press
release, the company's statements above constitute forward-looking
statements within the meaning of section 21E of the Securities Exchange
Act of 1934. These forward-looking statements reflect Electro Rent's
management's current views with respect to future events and financial
performance; however, you should not put undue reliance on these
statements. When used, the words "expect" and "will" and other similar
expressions identify forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties. The company
believes its assumptions are reasonable; nonetheless, it is likely that
at least some of these assumptions will not come true. Accordingly,
Electro Rent's actual results will probably differ from the outcomes
contained in any forward-looking statement, and those differences could
be material. Factors that could cause or contribute to these differences
include, among others, those risks and uncertainties discussed in the
company's periodic reports on Form 10-K and 10-Q and in its other
filings with the Securities and Exchange Commission. Should one or more
of the risks discussed, or any other risks, materialize, or should one
or more of our underlying assumptions prove incorrect, the company's
actual results may vary materially from those anticipated, estimated,
expected or projected. In light of the risks and uncertainties, there
can be no assurance that any forward-looking statement will in fact
prove to be correct. Electro Rent undertakes no obligation to update or
revise any forward-looking statements.

ELECTRO RENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited) (in thousands, except per share data)

Three Months Ended

August 31,

2013

2012

Revenues:

Rentals and leases

$

35,657

$

33,665

Sales of equipment and other revenues

24,511

24,836

Total revenues

60,168

58,501

Operating expenses:

Depreciation of rental and lease equipment

14,373

14,058

Costs of rentals and leases, excluding depreciation

4,812

4,372

Cost of sales equipment and other revenues

17,518

18,049

Selling, general and administrative expenses

14,679

13,777

Total operating expenses

51,382

50,256

Operating profit

8,786

8,245

Interest income, net

82

146

Income before income taxes

8,868

8,391

Income tax provision

3,171

3,305

Net income

$

5,697

$

5,086

Earnings per share:

Basic

$

0.23

$

0.21

Diluted

$

0.23

$

0.21

Shares used in per share calculation:

Basic

24,291

23,993

Diluted

24,328

24,216

Cash dividends declared per share

$

0.40

$

0.20

ELECTRO RENT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (in thousands, except share numbers)

August 31,

May 31,

2013

2013

ASSETS

Cash and cash equivalents

$

5,489

$

10,402

Accounts receivable, net of allowance for doubtful accounts of $410
and $457

34,390

34,350

Rental and lease equipment, net of accumulated depreciation of
$231,274 and $224,397

233,746

234,856

Other property, net of accumulated depreciation and amortization of
$19,125 and $18,873